Grant vs. Cooperative Agreement: Understanding the Differences
Grants and cooperative agreements are two of the most common forms of funding provided by federal agencies to support programs and projects in various sectors. Although both involve the transfer of funds from the government to a recipient, there are important distinctions between the two that applicants and awardees should be aware of.
Here is a rundown of the differences between a grant and a cooperative agreement:
Grant
A grant is a financial award given by a government agency or an organization to a recipient (typically a non-profit organization, educational institution, or local government) to support a specific project or program. Grants are typically awarded to projects that align with the goals and priorities of the funding agency, such as promoting public health, environmental conservation, or social welfare.
Grants are usually issued through a competitive application process, where interested parties submit proposals that are evaluated based on merit and fit with the grant program`s objectives. Grants can be either restricted (i.e., earmarked for a specific program or activity) or unrestricted (i.e., can be used for general operating expenses or other purposes).
Cooperative Agreement
A cooperative agreement is similar to a grant in that it is a financial assistance mechanism used by the government to support a project or program. However, cooperative agreements are different in that they involve a more collaborative relationship between the funding agency and the recipient.
Cooperative agreements are awarded to recipients that not only agree to carry out a specific project or program but also participate in the planning and execution of the initiative with the funding agency. The funding agency typically provides more direction and oversight during the project and may involve more frequent reporting and evaluation than with a grant. Cooperative agreements are often used when the government needs more involvement in the implementation of the project.
Key Differences
While both grants and cooperative agreements provide financial support for specific projects or programs, there are some key differences between the two mechanisms. These include:
1. Collaboration: Cooperative agreements require a higher level of collaboration between the funding agency and the recipient during the project`s planning and implementation.
2. Oversight: Cooperatives agreements usually involve more extensive reporting and monitoring than grants.
3. Objectives: Grants are more likely to be used for specific programs or activities, while cooperative agreements may be used for general operating expenses.
4. Funding availability: Grants are more commonly found than cooperative agreements.
In summary, it is important for applicants and awardees to understand the differences between grants and cooperative agreements to determine which type of funding suits their needs and goals. While grants are more common and may offer broader uses, cooperative agreements may provide more detailed collaboration and oversight. Understanding these distinctions is crucial to crafting a successful application.